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Franchisees Also Serve As eBay Middlemen

San Diego Business Journal Staff

Kurt Kanish sells whatever comes in the door of his Oceanside store as a middleman for online auctions on eBay’s Web site. | Michael S. Domine
Kurt Kanish sells whatever comes in the door of his Oceanside store as a middleman for online auctions on eBay’s Web site. | Michael S. Domine
Not too long ago, Kurt Kanish sold motor homes.

Now, he sells whatever comes in the door of his Oceanside store. Computer gear. Barbie dolls wearing Bob Mackie dresses. Fight shorts embroidered with the Marine Corps emblem.

Kanish sells items on eBay for his customers, then cuts his customers a check — minus a 30 percent commission. He says he’s able to generate $35,000 in sales per month.

For the past three years, he has held a franchise of Pasadena-based iSold It, which gets part of Kanish’s commission.

Outfits like iSold It take in customers’ unwanted goods and do all the legwork for an online auction. They photograph the item, research what the market is paying, set a minimum bid, write an item description for the eBay Web site, monitor the auction, correspond with the buyer, ship the item and pay the customer.

Kanish says the work keeps him busy six days a week, and he paces himself by posting 10 to 12 items daily. Generally, he tries to avoid items that will fetch less than $40.

Part of his job is telling customers he can’t immediately offer cash for an item. Many potential customers mistake him for a pawnshop.

In David Leckness’ opinion, selling on eBay does not bring in enough business to do it exclusively. So Leckness devotes 10 percent of his effort to that, and 90 percent to his other retail activities.

For the past 25 years, he has run the Kwik Kopy Printing franchise in Mission Viejo, in south Orange County. He’s had the eBay sideline for three years.

No Repeat Business

Ten square feet for a computer is all he needs for the eBay business, he says.
The problem with an eBay sale, Leckness says, is it’s usually a one-time event for the customer. There’s no repeat business.

Customers at Leckness’ establishment pay a 35 percent commission, which covers shipping and other services.

Some outfits prefer a business-to-business model for eBay sales. BizAuctions of Las Vegas and San Diego helps companies liquidate excess inventories using eBay. BizAuctions trades on the Pink Sheets under the symbol BZCN.

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  February 8-14, 2010
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